Q.11 Emanuel is a junior trader working in a brokerage firm's derivatives and hedging unit. Emanuel's superior instructed him to take a hedged position for one of its clients who wants to hedge its exposure in 10 million tons of plastic. Since the underlying asset is plastic and it is difficult to find futures contracts with the underlying asset of plastic, the trader is advised to take a position in rubber futures contracts. The contract size of rubber is 45 tons. Assume that the standard deviation of the spot prices of plastic is 0.019, the standard deviation of the futures prices of rubber is 0.032, and the correlation coefficient between the two is 0.87. Determine the optimal number of rubber futures contracts required to hedge the exposure in plastic.